Which Property Sectors Will Investors Target in 2012?

There is always much speculation over which real estate investment markets will attract the most interest each year...

There is always much speculation over which real estate investment markets will attract the most interest each year. According to CB Richard Ellis (CBRE), industrial and logistics properties are among the leading candidates, with the firm revealing 20 per cent of those questioned in a recent survey named it as the most attractive sector in which to buy real estate this year. This figure is up from 13 per cent recorded in 2011. Richard Moffitt, head of UK industrial at CBRE, commented: "In addition to strong income characteristics, the UK industrial sector also offers high levels of liquidity, long leases and a broad range of asset types and owners, and is therefore attractive to a diversity of buyers."

Head of European industrial and logistics investment at the organisation James Markby agreed, adding an increasing number of investors will realise the benefits of this asset class as the year progresses, further boosting its popularity. Foreign buyers in particular appear to see the merits in such real estate investment opportunities, with 45 per cent of all transactions in this sector carried out by overseas purchasers in 2011. However, this is not the only property market that may appeal to those with money to spend in 2012.

A survey published by DLA Piper this week examined the outlook for the European hotel sector, with 63 per cent of those surveyed describing it as a buyer's market at present. According to its findings, high-net-worth individuals, sovereign wealth funds and private equity funds will be the most active purchasers in this asset class during 2012, with the biggest players able to raise money without going down traditional financing routes. Looking outside the eurozone, the UK was named one of the most attractive markets in which to invest, with 61 per cent of respondents believing now is a good time to do so. Turkey, meanwhile, is favoured by 46 per cent of those questioned, while Switzerland and Russia are being considered by around one-quarter of the professionals asked.

- Thursday 08 March 2012

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